The price of gram may improve due to government procurement and import duty

27-Mar-2025 05:01 PM

Government Measures to Boost Gram Prices Amid Import Surge 🌾📈

📍 New Delhi – With cheap gram (chana) imports flooding the market and domestic prices falling below the Minimum Support Price (MSP), the Indian government is taking precautionary measures to stabilize prices.

🔍 Key Government Actions

✅ Increased MSP for Gram

  • MSP raised from ₹5,440 to ₹5,650 per quintal for the 2024-25 season.

  • Market prices have fallen below MSP, worrying farmers.

✅ Possible Import Duty on Desi Gram

  • Import duty-free till March 31, 2025 (mostly from Australia & Africa).

  • Uncertainty over extension of duty-free imports.

  • High duty unlikely, as the government needs to maintain stocks.

✅ Large-Scale Government Procurement Planned

  • Stock levels in central pool are low, so the government is increasing procurement.

  • If import duty is imposed & procurement is strong, prices may recover.

📉 Why Have Prices Dropped?

📌 High Imports: Record gram production in Australia led to increased imports.
📌 Supply Surge: Arrival of new gram crop in major producing states.
📌 Weak Demand: Limited demand at higher price levels.

📢 What’s Next?

🔸 Expect price recovery if the government starts large-scale procurement at MSP.
🔸 Import duty decision could play a crucial role in price stabilization.
🔸 Production increase by 5 lakh tonnes may add further pressure on prices.

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